SEBI Revokes Registration of 19 Foreign Venture Capital Firms Over Compliance Issue

The Securities and Exchange Board of India (SEBI) has revoked the registrations of 19 Foreign Venture Capital Institutions (FVCIs) after finding that they had violated capital market regulations. Among the entities affected are Blackstone Capital (Singapore) and Axis Capital (Mauritius).

Non-Compliance with Reporting Obligations

SEBI’s investigation revealed that these institutions had become defunct and were no longer registered in their respective jurisdictions. Furthermore, they had ceased publishing their quarterly reports.

It was observed that none of these firms had submitted data on the SEBI Intermediaries (SI) portal for 4 consecutive quarters, from March 2023 to December 2023. Additionally, 6 entities had never filed any reports, while four had last submitted data as far back as the 2012–13 financial year.

Lack of Response to Regulatory Notices

The market regulator also found that the firms had failed to update their ineligibility status. Despite multiple attempts to communicate, SEBI was unable to establish contact with any of the entities. Show-cause notices were issued, but none of the firms responded to them.

Due to their prolonged non-compliance and failure to adhere to regulatory norms, SEBI decided to cancel their registrations. The move highlights the regulator’s strict stance on enforcing transparency and compliance in the capital markets.

Of the 14 entities with known strike-off dates, 11 had been inactive for over five years, and 3 had been inactive for between 10 months and three years. These 19 entities were issued show-cause notices by Sebi in December 2024, but none responded.

Some Entities with Revoked FVCI Registrations are

Axis Capital Mauritius
Axis India Infrastructure Holdings
Blackstone Capital Partners (Singapore) VI FVCI Pte Ltd
P6 Asia Holding Investments (Cyprus) Ltd
Pequot India Mauritius IV Ltd
Omega FVCI Investments Pte Ltd
IFCI Sycamore India Infrastructure Fund
Blackstone Family Investment Partnership (Singapore) VI-ESC FVCI
Summit Partners India Venture Capital Investments

Conclusion

SEBI’s action against these FVCIs underscores its commitment to maintaining regulatory integrity in the Indian capital markets. The failure of these firms to comply with essential reporting obligations and respond to regulatory inquiries led to their deregistration, reinforcing the importance of transparency and compliance in the financial sector.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.